A new way to manipulate the Bitcoin price

Most recently, the US media reported an electronic letter from a person claiming the role of a representative of the People’s Bank of China.

The message contained a fake invitation to a press conference between the media, PBOC and the Hong Kong Money Management Authority (HKMA), which will review all aspects of Bitcoin’s operation in China and Hong Kong.

News.Bitcoin.com also received a letter that was allegedly sent by an official of the People’s Bank of China. The message explains that on February 14 at the press conference on digital currencies the deputy head of PBOC Ban Gongsheng will be present. Then, in an e-mail, it was said that PBOC and HKMA are planning to introduce new charters, which will lead to the fact that all enterprises and services will be tied to the crypto-currency industry.

“The press conference will make it clear that neither the People’s Bank of China nor the Hong Kong Monetary Authority recognizes Bitcoin or any other virtual currency as a legitimate means of payment, thus applying it as an official currency to pay off debts and financial obligations, “ explains email.

The Chinese authorities have already blocked access to all domestic and offshore trading platforms with crypto currency, Hong Kong has not yet realized this.

In addition, the report says that China will also introduce new laws making the crypto-currency “illegal”, although officials understand that the country is home to the world’s largest Bitcoin-Minner community.

“There is a risk for financial markets, including the shadow banking sector, which can provide unregulated services to avoid detection by authorities and protect the identity of those who provide and receive funds,” the letter said.

The president of the Bitcoin association in Hong Kong, Leonard Wise, said that the letter was most likely sent in order to cause more panic in the community. The goal was to manipulate the news to have some effect on the price in the market, which was already very bearish.

“The goal of senders of fictitious letters was to spread rumors and panic in the hope of manipulating the price of Bitcoin by taking short positions in futures and betting that the price will fall ,” Leonhard Uize said.

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.

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